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  Title	Designer Brands Inc. Reports Third Quarter 2025 Financial Results
  ID	29155691
  External ID	3e9c5c31899bb0f2933c15f277194a1f
  Author	Designer Brands Inc
  Published Date	Dec. 9, 2025, 5:45 a.m.
  Summary	Generated diluted earnings per share ("EPS") of $0.35 and adjusted diluted EPS of $0.38, both up over 40% compared to the same period last year
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  URL	https://www.wvnews.com/news/around_the_web/partners/pr_newswire/subject/earnings_projects_or_forecasts/designer-brands-inc-reports-third-quarter-2025-financial-results/article_909dac02-2303-5f22-871e-
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  Content ID	36749821
  Key	5f01999a-b05e-4d2a-8026-279716b26361
  Content	Generated diluted earnings per share ("EPS") of $0.35 and adjusted diluted EPS of $0.38, both up over 40% compared to the same period last year Delivered 210-basis point improvement in gross margin over the same period last year Fiscal 2025 adjusted operating income expected to be in range of $50.0 million to $55.0 million COLUMBUS, Ohio, Dec. 9, 2025 /PRNewswire/ -- Designer Brands Inc. (NYSE: DBI) (the "Company," "we," "us," "our," and "Designer Brands"), one of the world's largest designers, producers, and retailers of footwear and accessories, today announced financial results for the third quarter ended November 1, 2025. "Our third quarter performance represents another meaningful step forward in our transformation, as we demonstrated continued sequential improvement across multiple financial and operating metrics," stated Doug Howe, Chief Executive Officer. "Stronger consumer demand and improved in-store execution drove improved comparable sales in the third quarter compared to the second quarter. Our team also delivered a meaningful increase in gross profit and diligently managed expenses, which helped drive an increase in operating income over last year." Howe continued, "I'm encouraged that this positive momentum has extended into the early part of the fourth quarter, reinforcing the progress of our strategic initiatives and positioning us well as we close out the year. While macroeconomic pressures persist, we are confident in our ability to navigate the near-term environment and continue making progress on our long-term strategies." Third Quarter Operating Results (Unless otherwise stated, all comparisons are to the third quarter of 2024) Net sales decreased 3.2% to $752.4 million. Total comparable sales decreased by 2.4%. Gross profit increased to $339.6 million versus $333.8 million last year, and gross margin was 45.1% compared to 43.0% last year. Reported net income attributable to Designer Brands Inc. was $18.2 million, or diluted EPS of $0.35. Adjusted net income was $19.6 million, or adjusted diluted EPS of $0.38. Liquidity Cash and cash equivalents totaled $51.4 million at the end of the third quarter of 2025, compared to $36.2 million at the end of the same period last year, with $166.9 million available for borrowings under our senior secured asset-based revolving credit facility. Debt totaled $469.8 million at the end of the third quarter of 2025 compared to $536.3 million at the end of the same period last year. The Company ended the third quarter with inventories of $620.0 million compared to $637.0 million at the end of the same period last year. Return to Shareholders A dividend of $0.05 per share for both Class A and Class B common shares will be paid on December 19, 2025 to shareholders of record at the close of business on December 5, 2025. Store Count (square footage in thousands) November 1, 2025 November 2, 2024 Number of Stores Square Footage Number of Stores Square Footage U.S. Retail segment - DSW stores 497 9,759 496 9,784 Canada Retail segment: The Shoe Co. stores 120 612 125 638 Rubino stores 28 147 28 149 DSW stores 27 528 26 511 175 1,287 179 1,298 Total number of stores 672 11,046 675 11,082 Fiscal 2025 Financial Outlook The Company expects the following for fiscal 2025: Metric 2025 Guidance Designer Brands Net Sales Down 3% - 5% Adjusted Operating Profit $50.0 million - $55.0 million Adjusted Income Tax Expense $8.0 million - $10.0 million Forward-looking adjusted operating income excludes potential charges or gains that may be recorded during the fiscal year, including among other things restructuring costs, including severance charges, and impairment charges. Forward-looking adjusted income tax expense excludes the net tax impact of such items and the potential change in the valuation allowance on deferred tax assets. A reconciliation of these forward-looking non-GAAP amounts to the comparable GAAP measure is not provided, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the Company believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items are uncertain and could have a substantial impact on GAAP measures of our financial performance. For additional information regarding the use of non-GAAP measures, refer to the Non-GAAP Measures section below. Webcast and Conference Call The Company is hosting a conference call today at 8:30 am Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-888-317-6003, or the international dial-in, 1-412-317-6061, and reference conference ID number 7491258 approximately ten minutes prior to the start of the conference call. The conference call will also be broadcast live over the internet and can be accessed through the following link, as well as through the Company's investor website at investors.designerbrands.com: https://app.webinar.net/GvlLzdE2OoM For those unable to listen to the live webcast, an archived version will be available on the Company's investor website until December 23, 2025. A replay of the teleconference will be available by dialing the following numbers: U.S.: 1-877-344-7529 Canada: 1-855-669-9658 International: 1-412-317-0088 Passcode: 2491453 Important information may be disseminated initially or exclusively via the Company's investor website; investors should consult the website to access this information. About Designer Brands Designer Brands is one of the world's largest designers, producers, and retailers of the most recognizable footwear brands and accessories, transforming and defining the footwear industry through a mission of being shoe obsessed. With a diversified, world-class portfolio of coveted brands, including Topo Athletic, Keds, Vince Camuto, Kelly & Katie, Jessica Simpson, Lucky Brand, Mix No. 6, Crown Vintage and others, Designer Brands designs and produces on-trend footwear and accessories for all of life's occasions delivered to the consumer through a robust direct-to-consumer omni-channel infrastructure and powerful national wholesale distribution. Powered by a billion-dollar digital commerce business across multiple domains and over 670 DSW Designer Shoe Warehouse, The Shoe Co., and Rubino stores in North America, Designer Brands delivers current, in-line footwear and accessories from the largest national brands in the industry and holds leading market share positions in key product categories across women's, men's, and kids'. Designer Brands also distributes its brands internationally through select wholesale and distributor relationships while also leveraging design and sourcing expertise to build private label products for national retailers. Designer Brands is committed to being a difference maker in the world and the footwear industry. By leading with our corporate values of We Belong and We Do What's Right, Designer Brands supports the global community and the health of the planet by donating more than twelve million pairs of shoes to the global non-profit Soles4Souls since 2018. To learn more, visit www.designerbrands.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Certain statements in this press release may constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "could," "believes," "expects," "potential," "continues," "may," "will," "should," "would," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "guidance," or the negative version of those words or other comparable words. These statements are based on the Company's current views and expectations and involve known and unknown risks, uncertainties, and other factors, many of which are outside of the Company's control, that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: uncertain general economic and financial conditions, including economic volatility and potential downturn or recession, supply chain disruptions, new or increased tariffs and other barriers to trade, fluctuating interest rates, unemployment rates and inflationary pressures, and the related impacts to consumer discretionary spending, as well as our ability to plan for and respond to the impact of these conditions; our ability to anticipate and respond to rapidly changing consumer preferences, seasonality, customer expectations, and fashion trends; the impact on our consumer traffic and demand, our business operations, and the operations of our suppliers, as we experience unseasonable weather, climate change evolves, and the frequency and severity of weather events increases; our ability to execute on our business strategies, including growing our Brand Portfolio segment, enhancing in-store and digital shopping experiences, and meeting consumer demands; our ability to successfully and efficiently integrate acquisitions in a manner that does not impede growth; our ability to maintain strong relationships with our suppliers, vendors, licensors, and retailer customers; risks related to losses or disruptions associated with our distribution systems, including our distribution centers and stores, whether as a result of reliance on third-party providers or otherwise; risks related to cyber security threats and privacy or data security breaches or the potential loss or disruption of our information technology ("IT") systems, or those of our vendors; risks related to the implementation of new or updated IT systems; our ability to protect our reputation and to maintain the brands we license; our reliance on our reward programs and marketing to drive traffic, sales, and customer loyalty; our ability to successfully integrate new hires or changes in leadership and retain our existing management team, and to continue to attract qualified new personnel; risks related to restrictions imposed by our senior secured asset-based revolving credit facility, as amended, and our senior secured term loan credit agreement, as amended, that could limit our ability to fund our operations; our competitiveness with respect to style, price, brand availability, shopping platforms, and customer service; risks related to our international operations and our reliance on foreign sources for merchandise; our ability to comply with laws and regulations, as well as other legal obligations; risks associated with climate change and other corporate responsibility issues; and uncertainties related to future legislation, regulatory reform, policy changes, or interpretive guidance on existing legislation. Risks and other factors that could cause our actual results to differ materially from our forward-looking statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended February 1, 2025 or our other reports made or filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the time when made. Except as may be required by applicable law, the Company undertakes no obligation to update or revise the forward-looking statements included in this press release to reflect any future events or circumstances. DESIGNER BRANDS INC. SEGMENT RESULTS (unaudited) Net Sales Three months ended (dollars in thousands) November 1, 2025 November 2, 2024 Change Amount % of Segment Net Sales Amount % of Segment Net Sales Amount % Segment net sales: U.S. Retail $ 610,462 77.3 % $ 615,495 75.9 % $ (5,033) (0.8) % Canada Retail 77,279 9.8 % 83,504 10.3 % (6,225) (7.5) % Brand Portfolio 101,923 12.9 % 111,492 13.8 % (9,569) (8.6) % Total segment net sales 789,664 100.0 % 810,491 100.0 % (20,827) (2.6) % Elimination of intersegment net sales (37,253) (33,297) (3,956) 11.9 % Consolidated net sales $ 752,411 $ 777,194 $ (24,783) (3.2) % Nine months ended (dollars in thousands) November 1, 2025 November 2, 2024 Change Amount % of Segment Net Sales Amount % of Segment Net Sales Amount % Segment net sales: U.S. Retail $ 1,794,628 79.0 % $ 1,878,556 78.1 % $ (83,928) (4.5) % Canada Retail 206,261 9.1 % 213,813 8.9 % (7,552) (3.5) % Brand Portfolio 270,978 11.9 % 311,615 13.0 % (40,637) (13.0) % Total segment net sales 2,271,867 100.0 % 2,403,984 100.0 % (132,117) (5.5) % Elimination of intersegment net sales (92,785) (108,294) 15,509 (14.3) % Consolidated net sales $ 2,179,082 $ 2,295,690 $ (116,608) (5.1) % Comparable Sales Three months ended Nine months ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Change in comparable sales: U.S. Retail segment (1.5) % (2.8) % (4.6) % (2.1) % Canada Retail segment (6.6) % (4.6) % (5.2) % (4.2) % Brand Portfolio segment - direct-to-consumer channel (21.5) % (7.5) % (25.9) % (5.8) % Total (2.4) % (3.1) % (5.1) % (2.3) % Gross Profit Three months ended (dollars in thousands) November 1, 2025 November 2, 2024 Change Amount % of Segment Net Sales Amount % of Segment Net Sales Amount % Basis Points Segment gross profit: U.S. Retail $ 275,635 45.2 % $ 264,384 43.0 % $ 11,251 4.3 % 220 Canada Retail 34,340 44.4 % 37,181 44.5 % (2,841) (7.6) % (10) Brand Portfolio 28,968 28.4 % 31,313 28.1 % (2,345) (7.5) % 30 Total segment gross profit 338,943 42.9 % 332,878 41.1 % 6,065 1.8 % 180 Net recognition of intersegment gross profit 676 937 (261) Consolidated gross profit $ 339,619 45.1 % $ 333,815 43.0 % $ 5,804 1.7 % 210 Nine months ended (dollars in thousands) November 1, 2025 November 2, 2024 Change Amount % of Segment Net Sales Amount % of Segment Net Sales Amount % Basis Points Segment gross profit: U.S. Retail $ 782,953 43.6 % $ 821,708 43.7 % $ (38,755) (4.7) % (10) Canada Retail 94,694 45.9 % 98,642 46.1 % (3,948) (4.0) % (20) Brand Portfolio 74,147 27.4 % 91,425 29.3 % (17,278) (18.9) % (190) Total segment gross profit 951,794 41.9 % 1,011,775 42.1 % (59,981) (5.9) % (20) Net recognition (elimination) of intersegment gross profit 5,884 (8,400) 14,284 Consolidated gross profit $ 957,678 43.9 % $ 1,003,375 43.7 % $ (45,697) (4.6) % 20 Intersegment Eliminations Three months ended (in thousands) November 1, 2025 November 2, 2024 Intersegment recognition and elimination activity: Elimination of net sales recognized by Brand Portfolio segment $ (37,253) $ (33,297) Cost of sales: Elimination of cost of sales recognized by Brand Portfolio segment 28,929 23,823 Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period 9,000 10,411 $ 676 $ 937 Nine months ended (in thousands) November 1, 2025 November 2, 2024 Intersegment recognition and elimination activity: Elimination of net sales recognized by Brand Portfolio segment $ (92,785) $ (108,294) Cost of sales: Elimination of cost of sales recognized by Brand Portfolio segment 68,528 76,090 Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period 30,141 23,804 $ 5,884 $ (8,400) Operating Profit Three months ended (dollars in thousands) November 1, 2025 November 2, 2024 Change Amount % of Segment Net Sales Amount % of Segment Net Sales Amount % Basis Points Segment operating profit: U.S. Retail $ 66,202 10.8 % $ 60,507 9.8 % $ 5,695 9.4 % 100 Canada Retail 6,756 8.7 % 10,478 12.5 % (3,722) (35.5) % (380) Brand Portfolio 8,256 8.1 % 7,747 6.9 % 509 6.6 % 120 Total segment operating profit 81,214 10.3 % 78,732 9.7 % 2,482 3.2 % 60 Corporate/eliminations (38,551) (55,916) 17,365 (31.1) % Consolidated operating profit $ 42,663 5.7 % $ 22,816 2.9 % $ 19,847 87.0 % 280 Nine months ended (dollars in thousands) November 1, 2025 November 2, 2024 Change Amount % of Segment Net Sales Amount % of Segment Net Sales Amount % Basis Points Segment operating profit: U.S. Retail $ 166,021 9.3 % $ 202,281 10.8 % $ (36,260) (17.9) % (150) Canada Retail 15,619 7.6 % 22,698 10.6 % (7,079) (31.2) % (300) Brand Portfolio 7,241 2.7 % 7,650 2.5 % (409) (5.3) % 20 Total segment operating profit 188,881 8.3 % 232,629 9.7 % (43,748) (18.8) % (140) Corporate/eliminations (126,897) (171,842) 44,945 (26.2) % Consolidated operating profit $ 61,984 2.8 % $ 60,787 2.6 % $ 1,197 2.0 % 20 DESIGNER BRANDS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share amounts) Three months ended Nine months ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Net sales $ 752,411 $ 777,194 $ 2,179,082 $ 2,295,690 Cost of sales (412,792) (443,379) (1,221,404) (1,292,315) Gross profit 339,619 333,815 957,678 1,003,375 Operating expenses (300,056) (296,827) (899,380) (933,851) Income from equity investments 3,100 3,584 8,105 9,019 Impairment charges — (17,756) (4,419) (17,756) Operating profit 42,663 22,816 61,984 60,787 Interest expense, net (11,420) (11,565) (34,955) (34,161) Non-operating expenses, net (34) (260) (104) (512) Income before income taxes 31,209 10,991 26,925 26,114 Income tax benefit (provision) (11,891) 2,223 (13,462) 2,067 Net income 19,318 13,214 13,463 28,181 Net income attributable to redeemable noncontrolling interest (1,103) (202) (1,845) (562) Net income attributable to Designer Brands Inc. $ 18,215 $ 13,012 $ 11,618 $ 27,619 Diluted earnings per share attributable to Designer Brands Inc. $ 0.35 $ 0.24 $ 0.23 $ 0.48 Weighted average diluted shares 51,532 53,486 49,998 57,116 DESIGNER BRANDS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in thousands) November 1, 2025 February 1, 2025 November 2, 2024 ASSETS Current assets: Cash and cash equivalents $ 51,352 $ 44,752 $ 36,227 Receivables, net 64,376 50,371 70,570 Inventories 620,008 599,751 637,012 Prepaid expenses and other current assets 36,623 39,950 56,864 Total current assets 772,359 734,824 800,673 Property and equipment, net 221,081 208,199 212,206 Operating lease assets 701,895 701,621 707,544 Goodwill 130,607 130,386 130,649 Intangible assets, net 81,090 84,639 85,854 Deferred tax assets 37,672 43,324 39,656 Equity investments 59,940 56,761 53,358 Other assets 48,345 49,470 50,824 Total assets $ 2,052,989 $ 2,009,224 $ 2,080,764 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 249,421 $ 271,524 $ 238,040 Accrued expenses 180,580 152,153 167,601 Current maturities of long-term debt 6,750 6,750 6,750 Current operating lease liabilities 173,510 159,924 155,220 Total current liabilities 610,261 590,351 567,611 Long-term debt 463,089 484,285 529,551 Non-current operating lease liabilities 628,084 635,076 644,303 Other non-current liabilities 48,671 17,737 17,521 Total liabilities 1,750,105 1,727,449 1,758,986 Redeemable noncontrolling interest 4,317 3,284 3,272 Total shareholders' equity 298,567 278,491 318,506 Total liabilities, redeemable noncontrolling interest, and shareholders' equity $ 2,052,989 $ 2,009,224 $ 2,080,764 DESIGNER BRANDS INC. NON-GAAP RECONCILIATION (unaudited and in thousands, except per share amounts) Three months ended Nine months ended November 1, 2025 November 2, 2024 November 1, 2025 November 2, 2024 Operating expenses $ (300,056) $ (296,827) $ (899,380) $ (933,851) Non-GAAP adjustments: Restructuring and integration costs 3,796 2,936 9,883 10,114 Acquisition-related costs — 82 — 2,154 Total non-GAAP adjustments 3,796 3,018 9,883 12,268 Adjusted operating expenses $ (296,260) $ (293,809) $ (889,497) $ (921,583) Operating profit $ 42,663 $ 22,816 $ 61,984 $ 60,787 Non-GAAP adjustments: Restructuring and integration costs 3,796 2,936 9,883 10,114 Acquisition-related costs — 82 — 2,154 Impairment charges — 17,756 4,419 17,756 Total non-GAAP adjustments 3,796 20,774 14,302 30,024 Adjusted operating profit $ 46,459 $ 43,590 $ 76,286 $ 90,811 Net income attributable to Designer Brands Inc. $ 18,215 $ 13,012 $ 11,618 $ 27,619 Non-GAAP adjustments: Restructuring and integration costs 3,796 2,936 9,883 10,114 Acquisition-related costs — 82 — 2,154 Impairment charges — 17,756 4,419 17,756 Foreign currency transaction losses 34 260 104 512 Total non-GAAP adjustments before tax effect 3,830 21,034 14,406 30,536 Tax effect on above non-GAAP adjustments (4,373) (19,478) (4,116) (22,025) Valuation allowance change on deferred tax assets 844 (306) 74 (348) Total non-GAAP adjustments, after tax 301 1,250 10,364 8,163 Net income attributable to redeemable noncontrolling interest 1,103 202 1,845 562 Adjusted net income $ 19,619 $ 14,464 $ 23,827 $ 36,344 Diluted earnings per share $ 0.35 $ 0.24 $ 0.23 $ 0.48 Adjusted diluted earnings per share $ 0.38 $ 0.27 $ 0.48 $ 0.64 Non-GAAP Measures To supplement amounts presented in our consolidated financial statements determined in accordance with accounting principles generally accepted in the U.S. ("GAAP"), the Company uses certain non-GAAP financial measures, including adjusted operating expenses, adjusted operating profit, adjusted income tax, adjusted net income, and adjusted diluted earnings per share, which may be shown in the table above. These measures adjust for the effects of: (1) restructuring and integration costs, including severance charges; (2) acquisition-related costs; (3) impairment charges; (4) foreign currency transaction losses; (5) the net tax impact of such items; (6) the change in the valuation allowance on deferred tax assets; and (7) net income attributable to redeemable noncontrolling interest. The unaudited adjusted results should not be construed as an alternative to the reported results determined in accordance with GAAP. These financial measures are not based on any standardized methodology and are not necessarily comparable to similar measures presented by other companies. The Company believes that these non-GAAP financial measures provide useful information to both management and investors to increase comparability to prior periods by adjusting for certain items that may not be indicative of core operating measures and to better identify trends in our business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company compared to prior periods, when reviewed in conjunction with the Company's GAAP statements. These amounts are not determined in accordance with GAAP and therefore should not be used exclusively in evaluating the Company's business and operations. Comparable Sales Performance Metric We consider the percent change in comparable sales from the same previous year period, a primary metric commonly used throughout the retail industry, to be an important measurement for management and investors of the performance of our direct-to-consumer businesses. We include in our comparable sales metric sales from stores in operation for at least 14 months at the beginning of the applicable year. Stores are added to the comparable base at the beginning of the year and are dropped for comparative purposes in the quarter in which they are closed. Comparable sales include the e-commerce sales of the U.S. Retail and Canada Retail segments. Comparable sales for the Canada Retail segment exclude the impact of foreign currency translation and are calculated by translating current period results at the foreign currency exchange rate used in the comparable period of the prior year. Comparable sales include the e-commerce net sales of the Brand Portfolio segment from the direct-to-consumer e-commerce sites. The calculation of comparable sales varies across the retail industry and, as a result, the calculations of other retail companies may not be consistent with our calculation. View original content to download multimedia: https://www.prnewswire.com/news-releases/designer-brands-inc-reports-third-quarter-2025-financial-results-302635763.html SOURCE Designer Brands Inc.
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